TWITTER’S BOARD HAS recommended unanimously that shareholders approve the proposed $44 billion (€41.6 billion) sale of the company to billionaire and Tesla chief executive Elon Musk, according to a regulatory filing.
Musk reiterated his desire to move forward with the acquisition last week during a virtual meeting with Twitter employees, though shares of Twitter remain far below his offering price, signalling considerable doubt that it will happen.
In an interview with Bloomberg today at the Qatar Economic Forum, Musk listed the approval of the deal by shareholders as one of several “unresolved matters” related to the Twitter deal.
Shares of Twitter were essentially flat just before the opening bell today and far short of the $54.20 per share that Musk has offered to pay for each.
The company’s stock last reached that level on 5 April when it offered Musk a seat on the board before he had offered to buy all of Twitter.
According to CNBC, Musk is also concerned about the amount of debt he may need to take on to buy the company.
In May the billionaire committed to paying $33.5 billion in cash for the company and has also received $7.1 billion in equity financing commitments from investors.
Musk says the remaining $3.6 billion will come in the form of bank loans, because much of his wealth is tied up in Tesla stock.
Musk also cited the amount of fake accounts on the social media platform as one of his “unresolved matters” and when told by Twitter that less than 5% of accounts were fake, he said that’s “probably not most people’s experience when using Twitter.”
In a filing with the US Securities and Exchange Commission today detailing a letter to investors, Twitter’s board of directors said that it “unanimously recommends that you vote (for) the adoption of the merger agreement”.
If the deal were to close now, investors in the company would pocket a profit of $15.22 for each share they own.
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